The eyes of the world were trained on COP26, hoping for a
breakthrough in climate negotiations. So, what was actually
achieved and what are the long-term implications for investors?
Citywire had numerous reporters on the ground – including
our own deputy editor, Margaryta Kirakosian – who experienced
the monumental meet-up first-hand. In this issue, you will find
out what was expected, what was discussed and what is likely
to come next. This month we have curated the best of that
coverage, which Margaryta can expand on further.
Thanks Chris. The climate summit in Glasgow came at a turning
point for the financial industry.
With companies announcing new net-zero emissions
pledges almost every day, fund buyers are now confronted with
‘transitionwashing’ and have to find a way to test the credibility
of such claims. The task is made even more difficult by the fact
that by 2050 most of them will have retired.
The two-week conference received a mixed reception from
the fund and asset managers in attendance. Some decisions,
like the pledge to reduce methane emissions and stop
deforestation by 2030, were applauded. Others, such as India’s
2070 net-zero goal, were challenged. On pages 28-34 you
can follow the major announcements and how asset managers
reacted.
Not every ambition was realised, but the climate conference
provided a much-needed injection of optimism. COP26 is the
first major climate summit to include a dedicated Finance Day.
Investors I spoke to on the ground were enthusiastic about
policymakers, financial institutions and companies discussing
climate issues in the same room.
Impax CEO Ian Simm arrived at the conference with hope,
insisting that it wasn’t just ‘blah blah blah’ and in his last diary
entry on page 18 he explains why he deemed the conference a
success.
At the very least Glasgow provided a crucial starting point.
As Michelle Scrimgeour, CEO of LGIM, says on p16, the hardest
work on climate is just getting started, and asset managers need
to come good on their pledges.
